As employees leave their current jobs, the tidal wave of the Great Resignation refuses to back down. Attrition rates across all sectors, particularly in the IT sector, have reached record levels in recent quarters.
The technological transformation accelerated by the global pandemic has spurred a demand for tech talent that continues to outstrip the supply. According to Gartner, the attrition rate has increased from 10% in 2020 to 20% in 2021, with some IT companies battling rates as high as 30%.
In times like these, HR managers around the world are scrambling to retain their top performing talent while constantly looking for replacements. Organizations around the world are losing their top talent to better paying, engaging and culturally appealing companies. Which begs the question: how can organizations build a resilient talent retention strategy to brave the big quit and win the talent war?
Begin retention upon recruitment
Most organizations fail to recognize that retention begins at recruitment, from the moment the application arrives until the employee is successfully onboarded. First, HR teams need to identify candidates who align with the organizational culture and are ready to stay the course. Second, the organization must create an exceptional onboarding experience for the candidates thus identified. According to one study, an effective onboarding process can improve talent retention by 82%. Integrating employees into the work culture, educating them about their responsibilities, and helping them make meaningful connections can provide them with a healthy onboarding experience.
Provide incentives, recognition and rewards
In a fiercely competitive talent market where recruiters are quick to poach top talent, organizations need to offer their employees more than just compensation and benefits. Financial incentives to stay, recognition for their efforts, and rewards for their results can be a competitive differentiator when it comes to talent retention. According to statistics, employees whose managers consistently recognize their work can reduce turnover by 31%. Incentives can take the form of bonuses, salary increases and health benefits. At the same time, performance awards, management recognition, corporate gifts, etc. can help employees feel recognized and rewarded for their efforts.
Provide opportunities for personal and professional development
According to a survey, 70% of employees would leave their job for an organization that offers better learning and development. It is natural for employees to leave a job that does not provide opportunities for learning, career advancement and personal growth. By providing learning and development opportunities, organizations can demonstrate their commitment to employees’ long-term career paths. This can include training programs, graduate studies, personal mentorships, and leadership development, among others. As a result, employees will feel more valued and engaged and organizations can also benefit from their improved skills and improved productivity.
Cultivate a positive organizational culture
As employees spend almost half of their day at work, it is vital for them to have a positive and balanced workplace culture. A positive organizational culture can boost employee performance, productivity, engagement and even retention. Strong and accessible leadership that employees can trust, team collaboration, diversity and inclusion, strong ethical values and behavior, and an active reward system can help organizations create a positive work culture. It can be a game-changer for retaining and attracting talent. Employees want to work in an organization with a balanced work culture and a strong employer brand.
Offer flexible work options
According to reports, 76% or more of workers experience some level of burnout in their jobs. Most HR managers agree that employee burnout is primarily responsible for employee turnover. At a time when employee satisfaction and engagement are at an all-time low and burnout is at an all-time high, organizations need to step in and address the situation. As more and more employees demand remote work options, healthy work-life balance, and condensed work weeks, organizations shouldn’t shy away from offering flexible work models. Flexible work options will only improve employee productivity, performance, satisfaction, well-being and retention.
As talent markets evolve and go global, talent retention is becoming a global phenomenon experienced by even the most successful organizations. Staff turnover is inevitable, but organizations that recognize the problem, examine why people are leaving, and prepare to put in the effort can come up with effective talent retention strategies. The years since the outbreak of the COVID-19 pandemic have been difficult for organizations and employees. By providing employees with a healthy work culture, a fair compensation and reward system, trusted leadership, consistent recognition, learning and development opportunities, and flexible work options, organizations can reverse the talent attrition in favor of attraction and retention.
(Yogita Tulsiani is MD and Co-Founder, iXceed Solutions – a global technology recruitment provider)
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Published on: Monday 02 May 2022, 13:22 IST